The global yerba mate market was valued at US$ 1,251.0 Mn in 2018, and is expected to register a CAGR of 3.1%, in terms of revenue over the forecast period (2019 to 2027), to reach US$ 1,641.0 Mn by 2027.

The global yerba mate market is projected to reach US$ 1,641.0 Mn by 2027, exhibiting a CAGR of 3.1% during the forecast period (2019-2027). The market is expected to witness significant growth over the forecast period, attributing to increasing demand for yerba mate worldwide, owing to health benefits offered by yerba mate.

Moreover, increasing number of product launches worldwide is also contributing to growth of the yerba mate market. For instance, in January 2019, Coca Cola launched yerba mate tea capsules under its Leao and Matte Leao brands in Brazil. These capsules are available in Matte Leao Original and the ‘premium’ line Leao Senses versions along with different flavors such as blueberry & vanilla and passion fruit, blackberry, and orange & ginger. The capsules include paper filters that allow to extract maximum flavors from the tea. Moreover, yerba mate capsules are sold in boxes of 10, wherein each capsule makes around 200 ml of tea. The price of matte Leao original and premium Leao senses is US$ 5.13 and US$ 5.90, respectively. Therefore, increasing number of product launches is driving the global yerba mate market growth.

However, consuming yerba mate in excess quantity may lead to side effects, which is expected to adversely impact demand for yerba mate over the forecast period. According to World Health Organizations report, drinking hot yerba mate at 149 degree F (65 degree C) or above may lead to high risk of cancer compared to drinking cold yerba mate. Yerba mate also contains polycyclic aromatic hydrocarbons (PAHs), which are also found in tobacco smoke and grilled meat. Therefore, these negative aspects of yerba mate may hinder growth of the global yerba mate market over the forecast period.

Based on form type, yerba mate market is segregated into powder, liquid concentrate, and others. The powder segment is expected witness significant growth during the forecast period. The powder form of yerba mate can be used in food, drinks, supplements, shakes, ice-creams, cereal bars, and other snacks. For instance, companies such as The Green labs, LLC offers 100% organic yerba mate powder for numerous applications such as in beverages and food products. The product offered by the company is U.S Department of Agriculture (USDA) certified, non-GMO, and non-irradiated.

Latin America accounted for the revenue share of 82.2% in the global yerba mate market in 2018, and is expected to maintain its dominance over the forecast period. Yerba mate-based drink is considered as a traditional drink and is also preferred over tea and coffee in this region due to its varied health benefits such as high content of antioxidants and nutrients. Yerba mate also helps to boost energy and the immune system, lower risk of heart diseases, and in weight loss. This scenario is expected to boost the consumption of yerba mate in Latin America, which in turn is expected to propel growth of the yerba mate market over the forecast period.

Major players in the market are focused on adopting collaboration and partnership strategies in order to enhance their market share. For instance, in April 2019, New Age Beverage Corporation partnered with Hudson News Distributors, LLC. The partnership was focused on expanding the distribution of New Age Beverage products including yerba mate drinks across retail counters in the U.S. such as convenience stores, airports, drug chains, conventional grocery stores, and via its growing e-commerce platform.